Team BDS

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Team BDS
Business Development Specialists
Developing businesses through Technology and
People for Growth, Profitability and
Competitiveness
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Presentation Topics

• Who we are
• Part I Transportation as part of Supply Chain
• Part II Supply Chain General Guidelines
• Q A

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Team BDS
Who we are

• Team of specialist managers (15 people)
• Established since 1986
• Providing a hands on approach
• Sectors within the Irish Economy
• Over 400 client companies

Supply Chain Management
Growth Competitiveness
Research Development
Strategic Management
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Sectors

• Industrial Products
• Engineering Products
• Construction
• Electronic / Consumable products
• Food / Drink
• Software
• Furniture
• Medical
• Pharmaceutical

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Sample Reference Clients
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Most Basic Process
Product
Demand
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Complex Process
Demand Signal
Supply Signal
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Transportation in Perspective

• When we focus only on transportation costs, we
  can be assured that warehousing and inventory
  carrying costs will peak, most probably exceeding
  any gains we made in micromanaging transportation
  costs
• Focusing on transportation cost reduction does
  not mean that we lose sight of managing total
  logistics costs. Transportation cost reduction
  and total logistics cost control are not mutually
  exclusive.
• Transportation cost reduction can be
  accomplished while also reducing inventories and
  associated logistics costs

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Where to Start ?

• Develop a Baseline measure
• Example Transport Cost per unit/units of product
• Overall
• Cost for in-bound and outbound
• Level _at_ Standard Rate
• Level _at_ Premium Rate
• By Category
• Level _at_ Courier, Small Parcel
• Level using Road, Rail , Air , Ship

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Decision Tree

• Elimination
• Customer Make and offer.
• Supplier Get Landed Cost and compare
• Reduction
• Better Planning, Production , Route
• Better Economic Quantities
• Shop Around
• Optimisation
• Waste Reduction
• Type of Distribution
• Talk to the Transport Companies

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An Approach to Cost Reduction
Transportation Strategy
Waste Management
Service Provider
Inventory Strategy
Productivity/ Optimisation
Cust Service Strategy
KPIs
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Case Study

• Background
• Three Companies within 2 mile radius
• All three delivering weekly to same European
  Customer
• All three independently organising deliveries
• Three different transport companies.

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Case Study

• Phase 1 Concept/Opportunity
• Collective Distribution
• Consolidtion
• Win Win
• Phase 2 Leadership
• Organised Co-Operation
• Proposal Management
• Agreement
• Phase 3 Implementation
• Design
• Pilot Testing
• Measure/Monitor
• Refine
• Continually Improve

20 Cost Reduction Overall Win - Win
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Part II SCM

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Is your Business Cycle Links Running Smoothly?
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Where Do We Start ?Ideal start does not exist!

• Diagnostic /Benchmarking desirable
• Business Process Eliminate/Reduce Non Value
  Add
• Organisational Structure Roles, Accountability
• Use of Technology Better Decision Making
• Business Metrics/KPIs - Scoreboard
• Specific Projects
• Using Metrics as the Constant Scoreboard

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Baseline Metrics
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Information is King

• Each Metric should be reviewed from 4 angles
• Current Month
• Target Vs Actual
• Next Month
• Year to Date ( YTD)
• Year End

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Case Study

Prior to undertaking the Supply Chain Management
Initiative, Flow Technology Ltd were struggling
with a number of problems People were
operating in a growth environment with non
standardized processes. Good basic management
information was not readily available. Too much
day to day decision making rested with the MD.
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Case Study
Some immediate benefits that Flow Technology Ltd
obtained from the SCM programme are outlined
below. We also look forward to more measurable
benefits in the coming months.                 A
definition of our business processes
            A clearer understanding of roles
and responsibilities             Improved
coordination communication             Better
information available to make decisions with a
focused management team.             Provides
information on what we do well, where we have
problems and what we can improve.     Tim
Murphy MD stated that   We are now well on the
way to reducing our stock value by 25 while
reducing material disruptions on projects by 50
as well as improving productivity and reducing
significantly the levels of Non Value add in the
organization.
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Concluding message for todays climate
Often there is a lot more Low Hanging Fruit
than one thinks
Be comfortable in knowing when to seek help
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Thank You